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National Insurance and State Pensions
2. Employee Contributions
2.1 Employees pay:
- No contribution if weekly pay is below £110 a week.
- 11 per cent on earnings between £110 and £844 a week in the 2010/11 tax year plus 1 per cent on all earnings over £844 a week. The 11 per cent rate is reduced to 9.4 per cent if the employee is a member of a company pension scheme contracted-out of the State Second Pension.
2.2 There are special rules for some employees.
- Married women and widows who opted for 'reduced liability' before 12 May 1977 pay 4.85 per cent NICs on earnings between £110 and £844 a week, plus 1 per cent on all earnings above £844 a week.
- Employees with more than one job pay NICs for each job that earns more than £110 a week.
- Those over the state pension age do not pay NICs once they provide their employer with a Certificate of Age Exception. The employer still pays NICs at the full rate.
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